6. Which of the followie in en em Constract a model of te oall dec b. Build an equipment C Select dhe altemative that hs moe de d. Select any available altemative 7. A friend wants to deposit eqsal- of money for 3 com tve years g 5 yea m he can withdraw $10,000 twelve years from now. The cash Sow digr et e the above problem is neo A A C. d. 10K ne5 ne12 A A A 2-lo- 8. The lease of a machine is $5,000 in year one, but it increases by 6% every year through year ten. At an interest rate of 8% per year, the equivalent present worth of the machine's leasin nearest tO: $46,335 b. $42,623 c. $44,254 d. $40,593 a. 9. If $5,000 is invested in an account that pays 10% interest, compounded continuously, ho it take this investment to double in value? 9.82 years a. b. 10.55 years c. 7.85 years d. 6.93 years 0.If $15,000 is borrowed at 5% per year simple interest, the total amount due after 15 to: a. $11,250 b. $10,250 c. $26,250 d. $2,625,000 11. A company expects to pay $100,000 for certain machine 5 years from now. At an interest rate of 12% per year, compounded quarterly, the present worth of the machine's cost is represented by the following equation a P-100,000 (P/F, 4 %, 15 ) b. P-100,000 (PF, 12.55 % , 5) c. P-100,000 (P/F, 12 % , 20) d. Any of the above Anneer questions 12 through 13 based on the following statement An engineer is interested in estimating the cost of a new production facility to be built in 2020. She collected data from previous projects. Equipment cost of a similar facility in 2015 was $900,500 and material cost of a similar facility in 2016 was $960,400. Based on historical cost indexes for equipment and material, the engineer prepared the following table Equipment Index 100 Material Index Year 2014 2015 100 108 112 106 111 2016 114 118 2107 121 127 117 119 120 2018 2019 131 2020 12. The estimated cost of the equipment in 2020 is closest to: a. $1,824,469 b. $1,019,434 c. $906,226 d. $707,108 13. The estimated cost of the material in 2020 is closest to: a. $824,469 b. $906,226 c. $1,123,325 d. $1,016,138 nswer questions 14 through 18 based on the following statement Sharjah Road and Transportation Authority (SRTA) is planning to build a new City. Since only part of the capacity will be required for the next 20 years, one possible alternative is to build the bridge on two stages as shown in the blow table. The second option is to build the full capacity bridge. The transportation engineer collected the following cost data related to the two options and is required to analyze the two options. The MARR is 8% bridge for the Universit Construction Costs Rehabilitation Cost Every 10 years Annual Maintenance Cost aild in two stages: Stage 1 (Building half-capacity now) Stage 2 (Expand to full-capacity after 20 years) $12 M $14 M $1 M Additional $1.2 M on top of that for $50 K Additional $75 K on top of that for Stage 1 $100 K Stage 1 $2 M d full capacity now $24 M
